Cryptocurrency has come a long way since the enigmatic creator of Bitcoin, Satoshi Nakomoto, invented Bitcoin in 2008. Slowly but surely, major investment banks, јавно тргувани друштва па дури и а Владата have come to embrace crypto.
But as far as crypto has come, its further growth is hamstrung because of the underlying properties of the blockchain technology that underpin it. That’s because to date, blockchains haven’t been designed to reflect the world as it is; instead, developers expect the world to mold itself around the quirks of the blockchain’s underlying code.
И додека “Code is law” is the common refrain of crypto advocates, that code doesn’t take account of existing regulations such as identity verification, or KYC (know your customer) requirements.
Crypto’s regulatory incompatibility is proving to be a stumbling block for the lofty goal of global adoption; according to PWC’s 2021 Global Crypto Hedge Fund Report, over four-fifths (82%) of hedge fund managers described regulatory uncertainty as the greatest barrier to investing in crypto; fully half of those who have invested in crypto cited it as a major challenge.
“There is a huge infrastructure of law, regulation, due diligence and more that asset managers must adhere to, that gives asset owners confidence that their assets are safe,” Carl James, global head of fixed-income trading at Pictet Asset Management, told The Trade News. But, he pointed out, “The crypto world has been specifically designed to obviate the need for intermediaries.”
Until cryptocurrency can work in tandem with the existing financial system’s regulations and requirements, institutions and many retail users will stay clear of crypto’s many legal grey areas.
“I’ve been a believer in Bitcoin from the beginning, and I’m a big believer in privacy,” Michael Jackson, former COO of Skype and advisor to blockchain project Concordium, told Дешифрирај. “But one has to recognize that we live in a world where financial transactions are analyzed and noted. The existing society has accepted all these things, and accepted the fight against money laundering as part of the way things work in the modern world.”
Enter Concordium
Конкордиум offers a way out of this impasse: a blockchain with KYC baked in at the protocol level, offering the best of two worlds: privacy-centric decentralization and full-on regulatory compliance.
Concordium is a next-gen blockchain network developed by academic cryptographers and professionals with experience of heavily-regulated sectors like traditional finance and telecommunications. The network’s development takes place in collaboration with the Concordium Blockchain Research Center Aarhus (COBRA) at Aarhus University in Denmark and the Swiss Federal Institute of Technology (ETH).
Concordium’s mainnet is live as of summer 2021 and has already hosted an NFT drop by world chess champion Magnus Carlsen.
Source: https://decrypt.co/90302/crypto-needs-to-get-real